Enhancing Profitability through AI-Optimized Accounts Receivable: Reducing Cash Conversion Cycles

The management of accounts receivable is crucial to a company's profitability and overall growth, as it directly influences financial performance. Specifically, firms with longer cash conversion cycle periods exhibit lower profitability compared to those with shorter cash conversion cycle periods. The processes involved in this domain are often laborious, time-intensive, and susceptible to mistakes. This research paper aims to improve efficiency of accounts receivable procedures across various industries, ultimately enhancing the daily operations of collectors and reducing the cash conversion cycle. The proposed solution consists of a comprehensive architecture which leverages Generative AI to improve the efficiency and effectiveness of accounts receivable processing. Additionally, it addresses challenges such as customer segmentation, credit management support, collector assistance, dispute verification, and the customization of emails in accordance with customer strategies. Integration of Langchain-based QA system further enhances and optimizes the business operations.